“Well we know they’re definitely gouging consumers and going after the poor. But we don’t know how big the problem is because they don’t have to get licensed,” said Lieu.

The measure, which would give buyers protections, is expected to be considered by a Senate committee in about a month.

If approved, the bill would — among other things — cap the interest rates the dealers charge which often top 30 percent.

The dealers say interest rates are high because of the high risk of their customers. But Lieu says the dealers boost interest rates to make the payments difficult.

“And then they hope the consumers default on the car so they can repossess it, take it back and then resell it to another consumer. And they’ve done this sometimes nine, eight times for a single car in a very short period of time,” he said.

Meantime, the new consumer federal protection bureau says it too is looking into the practices of the Buy Here Pay Here auto dealerships.

Ed Mertz has been at KFWB since March of 2000 and began reporting for KNX in March 2009. Previously, Ed covered news in Arizona, Arkansas, Florida and Oklahoma.
Originally from Michigan, Ed graduated with a Journalism degree from USC.

As with ANY car dealership, do your research, know your payments and make sure you can afford them! Is it the Buy Here Pay Here car lots problem if the customer decides to spend their money on a one night casino visit? Sure, interest rates are high, payments are high… why? Because BHPH car lots take DIRECT losses and deal with High Risk credit challenged individuals. It’s much different when major manufacturers help cushion losses, but when you are an independent dealer those losses hurt and hurt everyone that works for you.

Another example of interference by entities that are probably funded by special interest groups. If you don’t think legislation like this would help Car Manufacturers and their dealers then I feel sorry for you.

High interest rates that are due to high risk customers. Direct losses that directly impact the bottom line. Not losses that can be cushioned by manufacturer dollars.

Please don’t cheapen this discussion with blatant insults. Respect the writer of this by actually showing that you can carry a somewhat intelligent conversation instead throwing words out. It makes you sound ignorant. Ignorance doesn’t look good on anyone.

All losses impact a bottom line, you have yet to define the application of “DIRECT losses,” in this matter, dumbsh!t. Obviously, you’re too f**king stupid to understand the question to carry on a, “somewhat intelligent conversation instead of throwing words out.”